More and more AI products to be developed in Vietnam

With AI increasingly seen as a powerful driver of growth across multiple sectors, Vietnam’s AI market is rapidly offering exciting opportunities for homegrown solutions. Google projects that, by 2030, AI could contribute as much as VND1,890 trillion ($79.3 billion) to the Vietnamese economy, accounting for 12 per cent of GDP, if AI technologies are broadly adopted.

From adoption to innovation

Back in 2021, there were only about 60 AI startups operating in Vietnam. In 2024, that number has jumped to roughly 300, for a remarkable 4.5-fold increase in just three years. This surge places Vietnam second in Southeast Asia in terms of the number of AI startups. As the startup landscape expands, a growing number of “Made in Vietnam” AI solutions are making their way into real-world applications, spanning healthcare, education, manufacturing, agriculture, and beyond.

In recent years, reports from both domestic and international organizations have consistently highlighted Vietnam’s soaring demand for AI adoption. This momentum stems from a powerful combination of government-led digital transformation efforts, rising demand for tech integration in business operations, and the growing familiarity of everyday users with AI tools.

Vietnam has set an ambitious goal: by 2030, its digital economy is to account for at least 30 per cent of GDP. Within this roadmap, AI is positioned as a strategic technology; driving process automation, boosting productivity, and enhancing the quality of both public and private sector services.

A recent survey by researchers from the Vietnam University of Commerce, as part of the 2024 Vietnam Annual Economic and Trade Report, found that 80 per cent of Vietnamese businesses had adopted AI in the past year; significantly higher than the regional average of 69 per cent. Many companies around the country are stepping up their AI investments to avoid being left behind in the digital race.

Vietnamese individuals are also actively embracing the technology. A Microsoft survey revealed that 88 per cent of knowledge workers in Vietnam have already used generative AI, well above the global average of 75 per cent.

Even without venturing abroad, the domestic market is already presenting rare opportunities. Speaking at an AI event, Professor Vu Ha Van, Professor of Mathematics at Yale University in the US and Scientific Director at the Vingroup Big Data Institute (VinBigData), remarked that Vietnam is at a turning point. “We shouldn’t just be end-users of foreign technologies, we should create our own, by Vietnamese, for Vietnamese,” he said.

Recognizing this potential, major technology corporations such as Viettel, FPT, CMC, VNPT, and Vingroup are ramping up their AI investments. These industry leaders are not only building infrastructure - including research hubs, data centers, and supercomputing facilities - but also launching AI products that serve governments, businesses, and local communities. Notably, the impact of these local innovations is measurable.

In the legal sector, Viettel’s Legal Virtual Assistant is helping judges and civil servants cut their workload by 30 per cent by providing quick access to documents, case files, and legal precedents. In healthcare, VinDr, an AI application developed by VinBigData, is supporting doctors in diagnosing lung, liver, breast, and spine conditions with over 90 per cent accuracy, all within seconds.

Beyond the domestic market, “Made in Vietnam” AI solutions are also venturing abroad. Companies like VinAI and FPT are actively partnering with global tech firms to co-develop AI solutions. Trusting Social, a fintech AI startup, now provides services to 85 banks, financial institutions, and telecom companies across India, Indonesia, the Philippines, and Vietnam.

Still, these success stories represent only the visible edge of Vietnam’s rapidly-evolving AI ecosystem and the country’s broader ambition to mark its place on the global technology map. Dr. Vuong Ba Quy, former Engineering Manager at Meta and Google and now Co-founder, President, and CTO of Innosearch AI, believes many Vietnamese AI products are already globally competitive. However, some businesses remain hesitant, limiting themselves to the domestic market. “Don’t worry about not being able to compete in large markets like the US or Europe,” he advised. “Think big and think globally; there’s always a place for us.”

Scaling up

In 2021, Vietnam issued its National Strategy on R&D and the Application of Artificial Intelligence until 2030. The goal is not only to become ASEAN’s AI hub, but also to gradually position Vietnam on the global AI map. This ambition is being realized step-by-step through a series of forward-thinking decisions, from encouraging startups and building digital infrastructure to cultivating an AI consumer market.

The information and communications infrastructure master plan for the 2021-2030 period, with a vision to 2050, outlines a roadmap for developing infrastructure to support AI deployment, including high-speed internet, green data centers, technology parks, and innovation hubs.

Vietnam currently has over 27 data centers invested in by eleven domestic companies, housing approximately 270,000 servers - a strategic move to reduce reliance on foreign cloud infrastructure and move towards mastering core technologies.

In terms of input for AI, Vietnam is developing a national data system, open data repositories, and large-scale, high-quality, open-source Vietnamese language datasets such as VIGEN. This ensures AI development aligns with the country’s unique language, culture, and ethical values.

To nurture endogenous capabilities, the government, through the National Innovation Center (NIC), is building a comprehensive AI ecosystem, covering talent development, startup incubation, research support, and commercialization. By 2030, the country aims to have 7,000 internationally-qualified AI experts and about 500 AI startups under Vietnamese brands.

Mr. Truong Gia Binh, Chairman of the FPT Corporation, noted that for Vietnam to become a regional hub for AI and semiconductors, about 3-5 per cent of the population will need to work in AI. This translates to roughly 3 million tech engineers over the next decade.

Though Vietnam is known for its abundant tech talent, it still faces a shortage of AI specialists. According to a report from information technology (IT) recruitment platform TopDev, by 2025 the IT industry will require around 700,000 new professionals, but domestic educational institutions can only supply approximately 500,000.

The education sector is evolving to meet these demands. AI is increasingly integrated into curricula, from primary to higher education. Schools are strengthening STEM education and incorporating AI in a more systematic manner. One notable initiative is the “AI for All” program, jointly launched by the Ministry of Science and Technology and industry partners and aiming to raise public awareness of AI and cultivate early-stage human capital.

According to Mr. Le Hong Viet, CEO of FPT Smart Cloud, five elements must come together to develop “Made in Vietnam” AI products. First, practical AI applications need to be created that directly serve the Vietnamese people. Second, data from the government and Vietnamese citizens must be gathered and owned domestically. Third, the supporting technology infrastructure has to be fully built out. Fourth, it is vital to attract and nurture high-quality talent, including experts from the global research community. Fifth, the market must be opened to stimulate demand and provide clear outlets for AI products and services.

Vietnam’s notable advantage lies in the synergy between State policy and leadership from major Vietnamese tech firms. These companies are not only investing in research but also empowering startups and small and medium-sized enterprises (SMEs) by providing platforms, Application Programming Interfaces (APIs), datasets, and infrastructure. Backed by financial strength and clear strategies, Vietnam’s tech giants are helping form a competitive regional tech network, one that enables “Made in Vietnam” AI products to serve the domestic market and expand globally.